Palladium Steadies After 7-Week Low

Palladium futures hovered near $1,400 per ounce, pausing losses after hitting seven-week lows as pressure across precious metals eased. Investors tempered expectations of a more aggressive Federal Reserve stance, supporting a modest rebound in metals prices. Additional support came from bargain buying after Tuesday’s sharp decline, while lingering concerns over constrained supply from major producers, particularly South Africa and Russia, continued to underpin the market. Further boosting sentiment, China imported a record 8.6 tons of palladium in April, nearly triple the seasonal average, as elevated domestic prices encouraged inflows and arbitrage activity between local futures contracts and global spot markets. Separately, JP Morgan recently projected palladium prices could reach $1,600 per ounce by the fourth quarter of 2026. Despite falling 11.19% over the past month, palladium remains 32.67% higher than a year ago.

Palladium futures slipped below $1,450 per ounce, touching their lowest level in five weeks amid a broader selloff across precious metal markets. The decline came as rising US inflation, fueled by escalating geopolitical tensions and higher energy prices, strengthened expectations that the Fed will keep interest rates elevated for longer. Producer prices recorded their fastest annual increase since 2022 in April, while consumer inflation posted its strongest rise since 2023. The stronger inflation outlook lifted the dollar and drove 10-year Treasury yields higher, reducing the appeal of non-yielding assets. Despite the recent pullback, supply conditions remain relatively tight. Production disruptions in South Africa and continued uncertainty surrounding Russian exports, still affected by sanctions and shifting trade routes, have kept the market sensitive to supply-side risks. Palladium has declined 8.54% over the past four weeks, though prices remain up 50.36% compared with a year ago.

Palladium decreased to 1444.00 USD/t.oz, the lowest since April 2026. Over the past 4 weeks, Palladium lost 8.54%, and in the last 12 months, it increased 50.36%.